STEEL workers in the North-East were dealt a bitter blow yesterday when Corus indicated the company was highly unlikely to accept union proposals to save jobs.

Since the troubled firm announced its devastating plans on February 1 to shed more than 6,000 jobs across the country - including 1,100 on Teesside and thousands in Wales - union officials have tried to come up with an alternative proposal to keep the doomed coil plate mill at Lackenby open.

They have altered their proposals as a result of information given to them by the company, in a desperate attempt to stop the axe falling.

Today, they are due to meet Corus managers again in the next round of complicated discussions ahead of a Corus board meeting on Tuesday.

But yesterday, Tony Pedder, executive director of Corus, said it was unlikely the unions would come up with anything Corus had not already considered and rejected.

His grim forecast came a week after managers declared the Teesside proposal "unrealistic".

Mr Pedder told the Welsh Assembly's economic development committee: "I would not want to delude anybody that there are major significant changes coming forward that are likely to affect our decision.

"It would be a great surprise to me if some rabbit was pulled out of the hat that we have not considered. But we are looking at everything that comes to us and those discussions are ongoing this week still."

But Tony Poynter, chairman of the multi- union steel committee at Teesside, has not given up hope. He said last night he believed next Tuesday would be D-day - decision day for the region.

He said: "They are aware of our position and we expect them to respond to the latest position tomorrow.

"It is the only viable alternative they haven't turned down. I think Tony Pedder is talking about the Welsh plans."

And he added that talks about strike action among Welsh steel workers could be supported by Teesside workers if there was a national ballot. A decision will not be made until after Tuesday.

Alistair Arkley, chairman of Teesside's steel task force, which also met yesterday, said everything possible must be done to save jobs and support workers and families affected by the fall-out of Corus's plans.

The task force, along with regional development agency One NorthEast, has developed a regeneration package for Teesside.

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